SIEGWERK INDIA PRIVATE LIMITED,DELHI V. NFAC, DELHI

SA 398/DEL/2024

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Siegwerk India Private Limited filed a stay application against the demand raised from an assessment order under sections 143(3) and 144C of the Income-tax Act, 1961, which included a transfer pricing adjustment. The assessee argued that the issue was previously addressed in their favor in earlier years and cited similar cases where a stay was granted. The Revenue opposed the total stay, suggesting a substantial payment. The Tribunal, considering the precedents and the balance of convenience, decided to grant a stay on the payment of 20% of the total demand, setting a deadline for the payment and stipulating conditions for the stay's validity.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 31664 (ITAT-DELHI)
• Duration Of Justice: 18 day(s)
• Appeal Type: Others
• Pronouncement Date: 18-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2020-2021
• Appeal Filed On: 30-09-2024
• Other Referred Cases: assessee's own case for AYs 2008-09 & 2009-10, AY 2018-19
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHANKAR LAL VERMA
• Assessee Lawyers: NEERAJ JAIN
• Keywords: Transfer pricing; International transaction; Application of stay
• Section: 144C

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I”, NEW DELHI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT and SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER SA No.398/Del/2024 (in ITA No.4556/Del/2024) (Assessment Year : 2020-21) Siegwerk India Private Limited, vs. NFAC, 303 A, 3rd Floor, Hemkunt Chamber No.89, Delhi. Nehru Place, New Delhi – 110 019. (PAN : AAACG4845N) (APPLICANT) (RESPONDENT) APPLICANT/ASSESSEE BY: Shri Neeraj Jain, Advocate Ms. Richa Agarwal, Advocate REVENUE BY : Shri Shankar Lal Verma, Sr. DR Date of Hearing : 18.10.2024 Date of Order : 18.10.2024 O R D E R PER S.RIFAUR RAHMAN, AM: 1. Applicant/Assessee, Siegwerk India Private Limited (hereinafter referred to as ‘the assessee’) filed the present stay application sought to stay the demand of Rs.4,29,52,713/- out of assessment order passed u/s 143 (3) r.w.s. 144C of the Income-tax Act, 1961 (for short ‘the Act’). 2. At the time of hearing, ld. AR of the assessee submitted that assessee has filed return of income declaring income of Rs.162,62,99,200/-. The case was selected for scrutiny and the assessment was completed u/s 143 (3) read with section 144C of 2 SA No.398/Del/2024 the Income-tax Act, 1961 (for short ‘the Act’) on 28.09.2023 determining the total income of Rs.1,79,24,74,284/- after making transfer pricing adjustment of Rs.16,61,75,084/- on account of international transaction for availing management services from the Associated Enterprises. In the result, total demand of Rs.4,29,52,713/- including interest of Rs.1,99,72,899/- was raised. 3. Aggrieved with the above order, assessee is in appeal before the ITAT. 4. At the time of hearing, ld. AR for the assessee submitted that the issue raised in grounds of appeal is squarely covered and he brought to our notice decisions of coordinate Bench in assessee’s own case for AYs 2008-09 & 2009-10. He submitted that the issue under consideration was considered by the coordinate Bench and remitted the issue to the file of Assessing Officer and after verification, Assessing Officer has deleted the addition. Further, he submitted that till assessment year 2017-18, no addition was made on this issue under consideration. He further brought to our notice that in AY 2018-19, wherein similar demand was raised, the coordinate Bench has granted the stay on payment of 15% of the total demand outstanding and he prayed that similarly stay may be granted for this assessment year also. Further, he submitted that the issue under consideration is exactly similar to the facts in earlier assessment years wherein exact similar additions were made and parties involved are also same. Therefore, he prayed for grant of stay for the present assessment year. 5. On the other hand, ld. DR for the Revenue objected to grant of total stay and prayed that the assessee may be asked to pay substantial amount. 3 SA No.398/Del/2024 6. Considered the rival submissions and material placed on record. We observed that various issues raised by the Assessing Officer is squarely covered in assessee’s own case in earlier assessment years, therefore, the issue under consideration is more or less settled in favour of the assessee. Since the stay may be granted on payment of at least 20% of the total pending demand, therefore, we are inclined to grant stay for the current assessment year on payment of 20% of the total outstanding demand. Accordingly, assessee is directed to pay 20% of the outstanding demand by 10.11.2024. Considering the above facts on record and balance of convenience in favour of the assessee, we are inclined to grant stay on the above terms for a period of 180 days from the date of this order or till the date of disposal of present appeal, whichever is earlier, subject to the rider that the assessee shall not take unnecessary adjournment to prolong the appeal otherwise stay order would cease to operate. 7. We direct the Registry to post the date of hearing along with other pending appeals for AY 2018-19 on 22.01.2025. The same is announced in the open court, hence there is no necessity of issue of separate notice. 8. In the result, the stay application is allowed on the above terms. Order pronounced in the open court on this 18th day of October, 2024 after the conclusion of the hearing. Sd/- sd/- (SAKTIJIT DEY) (S.RIFAUR RAHMAN) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 18.10.2024 TS 4 SA No.398/Del/2024 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "